TradeWx Overview

TradeWx provides access to the CX Futures Exchange, L.P. weather market to allow you to trade the results of different weather events. Some events are large (like Tropical Storm Landfalls), others are smaller (like the accumulation of Snow on a particular day), but the overall objective of TradeWx is to allow you to either hedge financial risk that you may incurr based upon weather events, or speculate on the weather.

If at any time you need additional help or have any questions, our support team is standing by to assist you. 

 

We're here to help!
Our support team stands at the ready to assist you. Reach us from TradeWx.com/ContactUs or give us a call at +1 (877) 300-4555

 

Help Topics

  1. Applying and Account Creation
  2. Funding
  3. Trading
  4. Weather Products
  5. Useful Resources
  6. Quick Facts
  7. Trading FAQ
  8. Hurricane Trading FAQ
  9. Daily Tropical Discussion Update

 

Applying and Account Creation

For most people, applying for an account on TradeWx is quick and easy. Since you are opening an account with a financial services firm, we require some personal information in order to verify your identity. We take our responsability to reduce the risk of fraud and money laundering through our services seriously, and the extra steps to complete your account opening process are essential to maintaining the security of our systems - and your money.

  1. Apply

The application process begins here. We only require you to provide an email address and create a secure password to move forward to the following steps.

  1. Review Legal Documents

TradeWx is a service provided by CX Futures Exchange, L.P., an exchange regulated by the U.S. Commodity Futures Trading Commission (“CFTC”). As you are accessing a real financial marketplace, you will need to review and agree to a few legal documents before you will be allowed to trade.

  1. Provide Contact Information

As part of our commitments to Know Your Customer (KYC), we need to collect some basic personal information from you. This information is kept confidential and stored in accordance with our Privacy Policy.

  1. Verify Your Identity

The final step in opening an account is to provide us your Social Security Number (SSN) and Date of Birth. These are used to ensure that no one creates duplicate accounts under false names and to comply with Anti-Money Laundering (AML) requirements.

 

Funding

In order to begin trading, you will need to fund your account. Currently, our clearinghouse partner CX Clearinghouse, L.P. only supports direct banking transfers via ACH. We are working with CX Clearinghouse to provide more funding options in the future.

Deposits

You may transfer money from your bank account directly into your trading account.

Withdrawals

You may transfer money out of your trading account directly into your bank account. 

 

Trading

Tropical Storms are easy to trade on TradeWx. make sure you have funded your account first, and then head over to the trading page.

Here are the key steps to placing a trade:

  1. Select the storm to trade. Usually there are three storms available to trade, with the one coming up next selected by default for you. At the bottom of the map you can see a few market statistics for your chosen storm. How many trades have been made on it (across all locations), the most traded location, and the maximum possible payout on the most traded location (per contract).
  2. Choose the zipcode (location) to trade. There are over 9400 zipcodes to choose from - all of the zipcodes within 75 miles of a possible landfall location are available. You can click on the map (zoom in for more detailed selection) or use the search icon on the left side of the map to find a specific zip code. Once you have selected a zipcode you can see the number of trades that have been placed on that specific zip code, as well as the maximum payout (per contract) for this zipcode if this storm made landfall right now and this zipcode was a winner.
  3. Choose how many contracts to buy. Each contract gives you the potential to collect one "share" of the pool for that storm. Every contract that is a winner for a storm shares equally in the total payout. The more contracts to buy, the higher a percentage share of the payout you can receive - but at a higher cost. Each contract costs $1.00.
  4. Place your order. Once you have entered the number of contracts, click Review and then confirm your order before it is placed. Once your order is placed you will receive a confirmation.

 

 

Weather Products

TradeWx plans to offer a variety of weather products that you can trade on. We will b e rolling out different products over time. Currently, we have made available Tropical Storm Landfall trading where you can predict where the named tropical storms in the Atlantic will make landfall.

Tropical Storm Landfalls

Please review the full rules for the landfall contracts here. Below is a summary of the information in the contract specifications, however, should there be any inconsistancy or disconnect between what's outlined here and the contract specs, the specifications themselves take precedence.

 

Useful Resources

 

AccuWeather - Hurricane Home

AccuWeather - Atlantic Hurricane & Tropical Storm Center

AccuWeather - Interactive Atlantic Satellite Maps

AccuWeather - Interactive Hurricane Tracker

 

National Hurricane Center (NHC)

NHC Continental US Hurricane Strikes – Infographic

NHC Major Hurricane Strikes

NHC Hurricane Strikes

NHC Tropical Cyclone Tracks

Climatological Areas of Origin and Typical Hurricane Tracks by Month - September

Climatological Areas of Origin and Typical Hurricane Tracks by Month - October

Climatological Areas of Origin and Typical Hurricane Tracks by Month - November

NHC Average Cumulative Number of Systems per year – Atlantic Basin

Quick Facts

  • Official Huricane season 2018: June 1st to November 30th
  • Historical Peak Hurricane Season: Aug 20th to October 20th
  • According to the National Hurricane Center the average number of systems per year in the Atlantic Basin is:
    • Category 3 or greater – 2.3
    • Hurricanes - 6.2
    • Named Systems – 11.3

 

Trading FAQ

What is TradeWx about?

CX Futures Exchange, L.P. and particularly TradeWx allow trading the weather. TradeWx offers named storm landfall contracts. Coming soon! contracts on Snowfall, Rainfall, Temperature and other weather phenomena.


What can I trade now?

You can trade by making predictions about the location of landfall (or lack of landfall) of named storms along the eastern seaboard of the continental USA.


Why should I trade weather?

To take advantage of your weather knowledge.  The Contract was also designed to mitigate economic risk arising from adverse weather.

How can I trade it?

Select from the list of zip codes on the US eastern seaboard to predict the landfall location of the next named storm.

Please note: Participants can also select – no landfall option.

How do payouts work? 

Landfall coordinates are provided by NOAA.  The contracts pay or are considered in the money (ITM) when a named tropical storm makes landfall within 75 miles of the Zip code you selected.  If there is no landfall for this storm or the landfall occurs more than 75 miles from your selected zip code, you are paid zero.

Am I able to trade?

To be eligible to trade and place orders you must be a duly approved exchange participant at CX Futures Exchange, L.P. You must be an individual who resides in the USA or a US based legal entity.  Application is free and is available here

Who cannot trade?

If you do not have a duly active and funded participant account you would not be able to place orders. If you are not a US resident or a US legal entity we will not be able to process your participant application at this time.

How do I start?

CX Futures Exchange, L.P. Participant Application is free and is available here. Once your application is submitted you can fund your account.  Upon application approval and funds clearing (ACH: 3-4 business days; Wire: same day), you will be ready to submit orders.  

Can I practice first?

You can sign up for the practice trading game – Forecaster Challenge at https://forecasterchallenge.accuweather.com.  You start with 25,000 AccuDollars, you can convert increments of 50,000 AccuDollars into $10 cash in a TradeWx account (up to a total of $100).

What do I need?

Make sure you have a funded TradeWx participant account at CX Futures Exchange, L.P.

Where can I find more weather data?

You can follow the Storm forecasts and advisories published by the National Hurricane Center, or follow the in depth and constantly updating coverage by AccuWeather. For more resource please check the Useful Resources section on this page. 

Get an edge with AccuWeather Pro!  Try it free for 4 weeks.

Do you have Demo-trading?

CX Futures Exchange does not offer Demo trading at TradeWx. However, you can sign up for the practice trading game – Forecaster Challenge at https://forecasterchallenge.accuweather.com.  You start with 25,000 AccuDollars, you can convert increments of 50,000 AccuDollars into $10 cash in a TradeWx account (up to a total of $100).

 

Hurricane Trading FAQ

What is hurricane trading?

TradeWx offers contracts relating to the location of landfall (or lack thereof) of named tropical cyclones in the eastern half of the continental U.S.

When can I trade hurricanes?

TradeWx offers named storm landing contracts during the length of the official hurricane season typically from June 1st through November 30th every year.

What is the minimum trade?

USD $1.00

When and how can I place orders?

Contracts in the next named storm will be available for trading from inception - 24 hours 7 days a week until 4pm ET on the day after the storm is named by the National Hurricane Center. There is no limit on trading frequency. A participant may place as many orders as they wish based on their available funds.


When am I no longer allowed to place orders?

TradeWx will cease taking orders for contracts in the current storm at 4pm on the day follwing the day when the National Hurricane Center names the storm.

 

What is the cost to place a trade?

TradeWx charges exchange fee of 2 cents per $1.00 in contract notional amount traded, with no fee at settlement time. The fee is collected at the time of trade. 

What am I risking in hurricane trading?

Your risk is limited to your initial trade investment.


What is my opportunity for profit in hurricane trading?

Prediction amounts by all participants in a given contract are pooled.  Purchasers of contracts whose zip code is within 75 miles of the landfall location, provided by the National Hurricane Center get a payout.   Funds are split proportionally among the in-the-money positions based on size of the position.  

How are CX contracts designed?

CX has approached designing the Contract terms and conditions with the assistance of informed experts in the field and looked at the experiences of other weather-related contracts that have been listed, both on CX and other U.S. DCMs. The design of the terms and conditions is intended to optimize the mitigation of financial risks associated with damage arising from named tropical storm (hurricanes and tropical storms) while at the same time simplifying certain of the complexities.

  

Daily Tropical Discussion Update

You can check the AccuWeather TradeWx Daily Tropical Discussion here.

  

For additional help, please Contact Us